Mid-and small-cap firms deliver stronger Q2 results than large-caps: Report

New Delhi [India], November 20 : Mid-cap and small-cap companies delivered better-than-expected results in the second quarter of FY26, outperforming large-cap firms, according to a report by Antique, a stock broking company.

The report noted that the earnings performance of its coverage universe for 2QFY26 came in ahead of expectations.

It stated "Mid & small caps reported better than expected results as compared to large-caps........2QFY26 corporate results were above our expectations".

However, the performance was not uniform across sectors. Railways, consumer durables and power utilities sectors disappointed during the quarter.

In contrast, an earnings beat was reported in oil marketing companies (OMC), agro-chemical, PSU banks, textile and building material segments.

For the Nifty 50 constituents, excluding financial, commodity, Tata Motors, Eternal and Indigo, the report shared that the revenue, EBITDA and PAT grew by 10 per cent each during the quarter.

Looking ahead, the brokerage pointed out that within its coverage universe, the implied 2HFY26 revenue and EBITDA growth expectations, excluding financial and commodity sectors, stand at 13.8 per cent and 18.0 per cent, compared to 1HFY26 growth of 9.0 per cent and 9.8 per cent respectively.

These estimates indicate that some scope for a minor earnings downgrade remains for the coming quarters.

The report also said that FMCG companies posted weak but in-line numbers, as GST reforms affected offtake in September. Higher trade incentives and input cost pressures weighed on operating margins during the quarter.

On the market outlook, the report has also set its Nifty 50 target for September 2026 at 27,500.

The report also shared that management commentary during results in terms of capex cycle remains constructive, despite the current slowdown in domestic order inflow. Strong order book position, healthy enquiry pipeline in key end-user industries.

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